Ancelotti is believed to be a potential target for the champions if chairman Khaldoon Al-Mubarak decides to sack Manuel Pellegrini this summer.

Pellegrini is feeling the heat following a poor season, which has seen his side fail to reach a cup quarter-final and struggle to defend their Premier League crown.

The Chilean could be axed if City fail to produce a strong finish to the season and end it without silverware.

Ancelotti was a target of City bosses back in 2013 before they opted to replace Roberto Mancini with Pellegrini instead.

Ancelotti went on to take charge of Real and led them to their tenth European Cup triumph last season.

STAYING PUT: Ancelotti won't be heading to Manchester City, a club source has said [GETTY]

“We can't do anything about the speculation regarding our manager, but as far as we are concerned there is no truth in suggestions we have approached Carlo Ancelotti”

Man City source

But he is under pressure to keep his job himself at the Bernabeu, with Real now trailing arch-rivals Barcelona in La Liga.

Reports in Italy have claimed City have approached the former Chelsea boss and that he is considering the chance to work at the Etihad.

But a City source insists this is rubbish and told Starsport: "Such reports are absolute nonsense and totally untrue.

"We can't do anything about the speculation regarding our manager, but as far as we are concerned there is no truth in suggestions we have approached Carlo Ancelotti."

Ancelotti has won the Champions League three times as a boss and it is his success in Europe that is believed to make him an attractive proposition for City if they do decide to make a managerial change.